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A stock is expected to pay a dividend of $3.50 in one year, and analysts expect its stock price at that time to be $94.2
Posted: Sun Jul 03, 2022 6:42 am
by answerhappygod
- A Stock Is Expected To Pay A Dividend Of 3 50 In One Year And Analysts Expect Its Stock Price At That Time To Be 94 2 1 (39.64 KiB) Viewed 11 times
A stock is expected to pay a dividend of $3.50 in one year, and analysts expect its stock price at that time to be $94.20. The stock has a beta of 1.35, the risk-free rate is 4.5%, and the market risk premium is 6.0% 4 pts a. What would you expect the current stock price to be, given the required rate of return? b. If the current observed stock price is $83.80, what expected return would it provide given the analysts' forecasts? c. What is the stock's alpha?